Payment Methods. The cost of doing business. Michelle Powell - BASYS Processing, Inc.

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1 Payment Methods The cost of doing business Michelle Powell - BASYS Processing, Inc.

2 You ve got to spend money, to make money

3 Major Industry Topics Industry Process Flow PCI DSS Compliance Risks of Non-Compliance & Breach EMV What is it? Affect for Merchant/Media Industry Cost of accepting credit cards Making a change to your program Payment methods

4 Industry Process Flow 1. Issuer 2. Acquirer (BASYS) 3. Merchant 4. Settlement Bank

5 PCI - DSS Payment Card Industry Data Security Standards Set of comprehensive requirements to help ensure the safe handling of cardholder data throughout the payments chain. Ongoing process; not a one time survey ALL Organizations, regardless of size or number of transactions must comply with PCI DSS and fill out the annual questionnaire.

6 PCI, Audits and Breach Completing the SAQ will sometimes uncover vulnerabilities or areas of concern that your IT department will need to address. Data Audits may be necessary and are provided by one of the authorized 3 rd party partners Visa/MC/Discover have approved Breach Insurance = Costs range from $10 -$40/month Can cover $100,000 or more in expenses related to the breach

7 PCI Potential Risks Non-Compliance Fees range from $ $89.99 per month Attacks against Level 4 merchants are on the rise Merchants who process <1 millions transactions annually Average organizational cost per breach is $5.5 million Cost per compromised card is $195 on average Recent surveys showed that over 70% of small businesses that have a breach do not recover

8 Credit card industry approach to PCI Typically merchant processors prefer a Reactive approach PCI Requirements and action items are buried in generic statement messages Merchants are left on their own to complete SAQ Non-Compliance is viewed as a revenue generator and a way for companies to assess additional fees

9 BASYS Processing approach to PCI Unique and pro-active approach to Compliance Fully staffed PCI Compliance team to assist with annual questionnaires as well as quarterly scans Follow up on an annual basis to make sure you re compliant Our goal is to not have to bill Non-Compliance

10 EMV What is it? EMV = Europay, MasterCard, Visa EMV is a fraud reducing technology that can help protect issuers, merchants and consumers against losses from the use of counterfeit and lost or stolen payment cards at the point of sale Smart chip technology adds layers of security against fraud and is virtually impossible to duplicate due to the dynamic data included on the chip

11 EMV s affect for Merchants Most of this technology is for card-present transactions Cards with a chip will be swiped, as well as requiring a card holder to either enter a PIN or signature for authentication. Businesses who fully adopt EMV will have a liability shift to the consumer for any fraud Merchants slow to adopt this technology will be responsible for all liability after October 2015

12 EMV s affect for the Media Industry Majority of your transactions are Card Not Present Card number provided via , phone, fax and keyed in Card Not Present Little to no effect immediately Merchants can choose to add additional security Ensure use of AVS and CVV E-commerce transactions MasterCard = Chip Authentication Program (CAP) /SecureCode Visa = Dynamic Password Authentication (Verified by Visa)

13 Breakdown of the different fees Interchange Rates Set by the Issuing Bank Rate and per item fee Assessment Fees Debit vs. Credit Rewards vs. Corporate Processor fees Monthly Fees Per item fees Discount Rates Programs Tiered Target Rate or Flat Rate Cost Plus

14 What s your Rate? Always the first question How processing? What type cards accepting? Re-Qualification analysis Blind quotes will always lead you astray 1,200different rates of interchange

15 How to lower your costs Lower risk = Lower cost Processing Method Terminal, Software, Gateway Additional Data Sent AVS = Address Verification System Level 2 vs. Level 3 Pre-Authorizations Daily settlement

16 Changing your program - Costs Advantageous to review your program every 1-3 years. Call your vendor and ask for a review of your program Visa, MasterCard, Discover, American Express review and can make updates to their program costs every 6 months April and October This is a great time to review your statements to make sure there weren t any major rate increases

17 Payment Methods Is there a better way for you to be processing? Keying all transactions = you SHOULD NOT be using a physical terminal Not physically possible to get the best rates for your business if not processing online especially in B2B Consider using a virtual terminal Must be able to send additional data with transactions Would it be helpful for you to securely store data? Recurring transactions are very common for Media clients Save 10 hours a month or more by storing your data

18 Questions? Thank you for coming! Visit our booth in the Exhibit Hall Contact me at By phone at